Title 3. Division of Credit Assurance — Subtitle 2. Maryland Housing Fund
Statutes in effect as of October 1, 2026.
Md. Code Ann., Hous. & Cmty. Dev. § 3-201 (2026)
Title 3. Division of Credit Assurance
Subtitle 2. Maryland Housing Fund
§ 3–201LinkCopy Citation
(a)
In this subtitle the following words have the meanings indicated.
(b)
“Business project” has the meaning stated in § 4–201 of this article.
(c)
“Credit enhancement” means a guarantee, including a guarantee of an obligation backed by a pool of mortgages, or other assurance or security device issued to:
(1)
improve the credit of a qualified borrowing entity; or
(2)
upgrade the security or rating of a financial obligation, including:
(i)
a mortgage backed security;
(ii)
a certificate of participation; and
(iii)
a bond or note issued to finance a development activity described in this subtitle.
(d)
“Energy conservation project” has the meaning stated in § 4–201 of this article.
(e)
“Financing” includes acquisition financing, permanent financing, short–term bridge financing, construction financing, and refinancing of a loan or project authorized under this subtitle.
(f)
“Fund” means the Maryland Housing Fund.
(g)
“Housing” includes:
(1)
a single dwelling unit;
(2)
a multiple dwelling unit;
(3)
an accessory unit residential facility;
(4)
a shared–living unit facility, accommodating at least two individuals or families, in which some or all of the living, dining, kitchen, or sanitary facilities are shared; and
(5)
an ancillary commercial or other facility that is related to, incidental to, and supportive of the housing.
(h)
“Infrastructure project” has the meaning stated in § 4–201 of this article.
(i)
“Mortgage” includes:
(1)
a deed of trust, a security agreement, and a pledge; and
(2)
any other security arrangement securing a loan, including a mortgage, to finance:
(i)
the purchase of stock or membership in a cooperative ownership housing corporation; or
(ii)
the construction or rehabilitation of dwelling units in a cooperative ownership housing corporation.
(j)
“Public purpose project” has the meaning stated in § 4–201 of this article.
(k)
“Solar energy project” has the meaning stated in § 4–201 of this article.
Md. Code Ann., Hous. & Cmty. Dev. § 3-202 (2026)
Title 3. Division of Credit Assurance
Subtitle 2. Maryland Housing Fund
§ 3–202LinkCopy Citation
(a)
(1)
The General Assembly finds that:
(i)
the flow of private investment capital into businesses and adequate housing can be stimulated by a system insuring qualified lending institutions against losses resulting from nonpayment of money owed under the terms of a note, bond, or other evidence of indebtedness; and
(ii)
the insurance can help State and local activity to finance businesses, housing, and rehabilitation.
(2)
The General Assembly also finds that adequate housing can and should be provided by private capital under our free enterprise system and in accordance with sound investment practices.
(3)
The General Assembly finds as a subject of concern that:
(i)
many residents of the State are living in substandard housing; and
(ii)
there is a shortage of housing at reasonable costs for various income levels.
(b)
The General Assembly finds that it is in the public interest to promote energy conservation projects and solar energy projects by providing insurance for:
(1)
loans made by qualified lending institutions; and
(2)
bonds or notes issued to finance the projects.
(c)
The General Assembly finds that the sale of pooled mortgages or securities backed by mortgages to private or public investors, including public and private pension funds, is in the public interest and could increase the investment capital available to make mortgage loans to:
(1)
acquire, construct, and rehabilitate housing; and
(2)
acquire, operate, construct, and rehabilitate businesses.
(d)
(1)
In this subsection, “distressed area” has the meaning stated in § 4–201 of this article.
(2)
The General Assembly finds that it is in the public interest to encourage the financing of, and otherwise to support, the planning, acquisition, development, construction, reconstruction, rehabilitation, repair, renovation, and other improvement of:
(i)
public purpose projects in distressed areas in the State; and
(ii)
infrastructure projects.
(e)
The General Assembly finds that the flow of public and private capital to support the activities specified in this section will be encouraged and expanded by:
(1)
insuring:
(i)
loans made by qualified lending institutions;
(ii)
bonds or notes issued by qualified issuers; and
(iii)
obligations backed by mortgages; and
(2)
providing other credit enhancements.
Md. Code Ann., Hous. & Cmty. Dev. § 3-203 (2026)
Title 3. Division of Credit Assurance
Subtitle 2. Maryland Housing Fund
§ 3–203LinkCopy Citation
(a)
There is a Maryland Housing Fund.
(b)
The Fund shall further the State interests expressed in § 3-202 of this subtitle.
(c)
The Department shall manage and supervise the Fund.
(d)
(1)
The Fund is a continuing, nonlapsing special fund that is not subject to § 7-302 of the State Finance and Procurement Article.
(2)
The Department shall deposit money for the Fund with the State Treasurer.
(3)
The money shall be held in the financial institutions that the State Treasurer considers proper and shall be accounted for by the Comptroller in a special account known as the “Maryland Housing Fund”.
(4)
All premium and fee income shall be credited to the Fund to operate the Fund and to provide additional insurance, guarantees, and credit enhancement.
(e)
The Fund consists of:
(1)
money appropriated by the State to the Fund;
(2)
proceeds of any State loan to the extent provided by the General Assembly or any governmental unit authorized to issue bonds for the Fund;
(3)
fees and premiums that the Department receives in connection with insurance or other credit enhancement provided by the Fund; and
(4)
all other money made available to the Department from any source for the purposes set forth in this subtitle.
(f)
Money in the Fund shall be invested in the same manner as other State money.
(g)
(1)
Money in the Fund shall be used to:
(i)
insure loans that the Department accepts under this subtitle;
(ii)
insure bonds or notes issued to finance a project that is eligible for insurance under this subtitle; and
(iii)
provide other forms of credit enhancement under this subtitle.
(2)
Money in the Fund that by agreement, contract, secretarial determination, or regulation has been created as an identifiable insurance or credit reserve may be used only in conformance with the terms and conditions creating the reserve.
(h)
The Secretary may transfer to any reserve:
(1)
operational money;
(2)
earnings not yet allocated to a particular reserve;
(3)
State appropriated money;
(4)
proceeds of State general obligation bonds; or
(5)
other money received and not allocated to a particular reserve.
(i)
(1)
Beginning in fiscal year 2010, if the balance of the unallocated reserve of the Fund at the end of any fiscal year exceeds $10,000,000, the excess over $10,000,000 shall be transferred by the Governor to the:
(i)
Homeownership Programs Fund established under § 4–502 of this article;
(ii)
Rental Housing Programs Fund established under § 4–504 of this article; and
(iii)
Special Loan Programs Fund established under § 4–505 of this article.
(2)
The distribution of any money transferred from the Fund to the Homeownership Programs Fund, the Rental Housing Programs Fund, and the Special Loan Programs Fund shall be at the discretion of the Secretary.
Md. Code Ann., Hous. & Cmty. Dev. § 3-204 (2026)
Title 3. Division of Credit Assurance
Subtitle 2. Maryland Housing Fund
§ 3–204LinkCopy Citation
Insurance, a guarantee, or other credit enhancement provided under this subtitle:
(1)
does not pledge the faith, credit, or taxing power of the State or the Department; and
(2)
is payable only to the extent of the reserve or other identified money backing the insurance, guarantee, or credit enhancement.
Md. Code Ann., Hous. & Cmty. Dev. § 3-205 (2026)
Title 3. Division of Credit Assurance
Subtitle 2. Maryland Housing Fund
§ 3–205LinkCopy Citation
(a)
In this section, “development costs” has the meaning stated in § 4-201 of this article.
(b)
The Department, in its own name or in the name of the Fund:
(1)
may insure or guarantee on terms that it specifies a mortgage or pool of mortgages offered or bonds or notes issued that are eligible for insurance under § 3-202 of this subtitle;
(2)
may insure a total of not more than $30,000,000 of bridge loans that are:
(i)
made for part of the development costs of rental housing projects that are awarded federal low income housing tax credits; and
(ii)
secured by personal rather than real property;
(3)
may provide other forms of credit enhancement on terms that it specifies for qualified lenders and borrowers who otherwise cannot get credit enhancement in the private market;
(4)
may issue obligations in any form backed by a pool of mortgages, including:
(i)
securities;
(ii)
certificates of participation;
(iii)
grantor trusts;
(iv)
collateralized mortgage obligations; and
(v)
pass-through certificates;
(5)
notwithstanding Titles 10 through 17 of the State Finance and Procurement Article, after a default under an obligation that is insured or otherwise backed by a credit enhancement under this subtitle, may acquire, hold, improve, operate pending sale or other disposition, sell, assign, exchange, transfer, convey, lease, mortgage, or otherwise dispose of or encumber:
(i)
real property or an interest in real property;
(ii)
personal property or an interest in personal property; or
(iii)
evidence of indebtedness, including:
(1)
pass-through certificates;
(2)
residual interests; and
(3)
other securities backed by real estate or a mortgage; and
(6)
in connection with a property, whether or not insured by the Fund, acquired by the Department or the Fund through foreclosure, through deed in lieu of foreclosure, or in settlement for a claim for loss:
(i)
may contract with a private party for services to secure, maintain, operate, or improve the property in anticipation of disposition of the property, without requiring that the contract comply with Division II of the State Finance and Procurement Article; or
(ii)
may make a mortgage loan to assist in the disposition of the property.
Md. Code Ann., Hous. & Cmty. Dev. § 3-206 (2026)
Title 3. Division of Credit Assurance
Subtitle 2. Maryland Housing Fund
§ 3–206LinkCopy Citation
(a)
In offering insurance and other forms of credit enhancement, the Department shall adopt eligibility standards that are reasonable to aid in:
(1)
financing the purchase, construction, or rehabilitation of:
(i)
housing projects;
(ii)
special housing facility projects, consisting of the acquisition, rehabilitation, improvement, renovation, construction, financing, or refinancing of a building that:
(1)
provides common, shared, or independent living, dining, kitchen, sanitary, and sleeping facilities;
(2)
may include supportive services or supervisory live–in personnel for individuals with specialized housing needs; and
(3)
may include nonresidential facilities to serve individuals with special needs who may or may not be residents of the special housing facility;
(iii)
rehabilitation projects, as defined in § 4–901 of this article;
(iv)
energy conservation projects;
(v)
solar energy projects;
(vi)
public purpose projects;
(vii)
infrastructure projects; or
(viii)
business projects; and
(2)
the sale or other transfer of an obligation that is:
(i)
denoted as a bond, note, collateralized obligation, grantor trust, conduit, or other form of security or obligation; and
(ii)
backed directly or indirectly by a mortgage or a payment derived from a mortgage.
(b)
The standards adopted under subsection (a) of this section shall ensure that a lender benefiting from insurance or other credit enhancement provided by the Department is responsible and able to service the loan.
(c)
A determination by the Secretary is conclusive if it relates to the eligibility of a project, facility, or undertaking for:
(1)
insurance or other credit enhancement; or
(2)
other action taken by the Department, in its own name or in the name of the Fund, under this subtitle.
Md. Code Ann., Hous. & Cmty. Dev. § 3-207 (2026)
Title 3. Division of Credit Assurance
Subtitle 2. Maryland Housing Fund
§ 3–207LinkCopy Citation
(a)
The Department shall adopt regulations that are necessary to carry out the purpose of this subtitle.
(b)
(1)
Annually, on or before December 1, the Department shall make a written report to the Governor and, subject to § 2-1257 of the State Government Article, to the General Assembly on the financial status of the Fund and its operations for the preceding fiscal year.
(2)
The report shall include the types and amount of:
(i)
insurance reserves;
(ii)
insurance issued;
(iii)
premiums charged; and
(iv)
claims made.
Md. Code Ann., Hous. & Cmty. Dev. § 3-208 (2026)
Title 3. Division of Credit Assurance
Subtitle 2. Maryland Housing Fund
§ 3–208LinkCopy Citation
This subtitle shall be liberally construed to carry out the findings set forth in § 3-202 of this subtitle.